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Zimbabwe stock exchange plunges 11% after Presidential result

Shortly after it was announced that President Robert Mugabe yet again won a presidential election, to extend his 33 years in power, Zimbabwe’s main stock index plunged 11% – its biggest one-day decline since 2009.

The benchmark Zimbabwe Stock Exchange Industrial Index fell to 205.6 points, from 231.21, by the close of trade in Harare, according to IH Securities – the Zimbabwe Stock Exchange is yet to release the day’s official figures.

Analyst Carla Simleit explained that this is a post election panic. “It’s reflective of the uncertainty thats around the elections”.

The results were released by the Zimbabwe Electoral Commission on Aug 3 and showed that Mugabe, 89, won 61% of the Presidential vote, while his Zimbabwe African National Union-Patriotic Front won a two thirds majority in parliament.

His main rival, the Movement for Democratic Change, however refused to accept the result and accused Mugabe’s party of rigging the election.

Mugabe’s government is pushing policies including a law that compels foreign-owned companies to cede 51% of their assets to black Zimbabweans or the government.